Key takeaways
- H2O Driverless AI forecasts deposit balances, runoff and cash flows from your own history, with reason codes on every forecast.
- The same forecasts feed liquidity metrics, such as the liquidity coverage ratio and net stable funding ratio, and your funding plan.
- Models of prepayment and deposit behavior help your team size hedges and test them against rate scenarios.
- An agent assembles the liquidity and hedging pack for your asset and liability committee and drafts the commentary; your team reviews it and decides.
Your treasury team reports on yesterday
Your team forecasts liquidity from deposit, loan and market data that sit in several systems. Many of the behavioral assumptions, such as how long non-maturity deposits stay and how fast loans prepay, are reviewed once a year while customer behavior changes faster.
When rates move, you need to know what happens to deposits, funding costs and your hedges at the same time. Rebuilding that view by hand takes days, and the reporting pack often arrives after the market has moved again. Every model also has to be explainable to your committee, your model risk team and your supervisors.